Banks: Pensioners Save Most, Despite Low Incomes

Despite their low incomes compared to the working-age population, seniors remain the most rational consumers and biggest savers in Estonia, according to banks.

"A couple of weeks ago we conducted focus group studies in different customer segments and the results were predictable - seniors think about their finances a lot and consume very rationally,” said Teet Parring, head of segments at Nordea. Though he said there are no precise statistics, he estimates that a quarter to one-third of all the savings in Estonian banks belong to senior customers.

Statistics recently compiled by SEB reveal that around 50 percent of over 66-year-olds have savings equal to at least 13 months of their pension. “Currently around 20 percent of our working-age customers have savings, while with pensioners the figure stands at 80 percent,” said Mart Maasik, head of SEB's Business Development Division.

As pensions were not reduced during the recent economic downturn, savings by seniors grew significantly even during the crisis period, ETV reported.

According to Hanna Turetski, spokeswoman for the Consumer Protection Agency, this trend is not surprising considering the fact that seniors often have to make ends meet on around 300 euros per month. "They of course have more time, their inquiries are much more thorough and they are definitely more price sensitive," she said.